Bridgestone to buy ACC, Telco stakes in JV

By SiliconIndia   |   Wednesday, 20 November 2002, 08:00 Hrs
Printer Print Email Email
NEW DELHI: Bridgestone Corporation, A Japanese tyre manufacturer, is contemplating making commodity grade tyres in India as part of its strategy to expand capacity.

The company, according to a business daily, has already decided to buy out its Indian partners in the joint venture company, Bridgestone ACC India Ltd.

Bridgestone currently holds 64 per cent stake in the company.

The two Indian partners, namely Associated Cement Companies Ltd (ACC) and Tata Engineering and Locomotive Company Ltd (Tata Engg), holds 19.56 per cent and 6.44 per cent, respectively. The remaining 10 per cent is held by Mitsui & Co of Japan, says the daily.

The company has applied to the Foreign Investment Promotion Board (FIPB) seeking approval to buy out its Indian partners in the joint venture company.

Following the buyout, the daily said the company's paid-up capital will remain unchanged at Rs 155.2 crore while Bridgestone's total investment in the Indian tyre manufacturing company will go up to Rs 139.68 crore from the present Rs 99.68 crore.

The Japanese tyre manufacturer has earmarked a total investment of $250 million for the global expansion and geographical realignment exercise, of which $104 has been planned for Asian operations though the exact amount to be invested in the Indian operations is yet to be formalised, according to informed sources.

Bridgestone's Indian plant is located at Kheda in Madhya Pradesh and started operations in 1998.

Fossil Group sells smartwatch
Global watch and accessories maker Fossil Group has announced to sell its smartphone technolog..
Ola raises Rs 400 cr for electric
Leading ride-hailing cab aggregator Ola on Friday said it raised Rs 400 crore from its early in..
GST rate cut to spur Bengaluru
The realty market in India's tech hub is set to grow as lower Goods and Services Tax (GST) rate..
SpiceJet plans aggressive
Budget passenger carrier SpiceJet plans to aggressively expand its international networks to fl..